The cash flow statement is one of several financial statements issued by public companies, which also include a balance sheet and an income statement. Often, the outflow happens only at […]

Below is a typical balance sheet example; each link provides further details and how to account for them. Inventory stock includes all items a business possesses with the intention of […]

Assume that a homeowner has taken mortgage amounting to $300,000 to be repaid at a fixed interest rate of 5% for 30 years. The individual will need to pay the […]

While Present Value calculates the current value of a single future cash flow, Net Present Value (NPV) is used to evaluate the total value of a series of cash flows […]

Now, project B has a higher NPV and a higher PI than project A, which implies that project B is more profitable and more attractive than project A. However, project […]

1) It helps you determine how much money your business generates on every dollar of sales. You can use this information to determine whether your business is profitable or not […]

Understanding these metrics allows business owners to see beyond gross profit figures, diving into how individual products or services perform. This is particularly important for companies with diverse product lines, […]